Fitch assigns BB- to WeWork

Fitch Ratings said it assigned a BB- long-term issuer default rating to WeWork Cos., Inc.

The agency also assigned a BB-/RR4 rating to the company’s senior unsecured notes.

The outlook is stable.

Fitch said the ratings and outlook reflect WeWork's strong operating profile predicated on execution of its expansion strategy.

“WeWork has exhibited hyper-growth since it was founded in 2010, having increased memberships to 220,000 and run rate revenue to greater than $1 billion. Open locations exhibit very strong unit economics with location contribution of mid-double digits on a percentage basis, which is expected to improve as WeWork continues to benefit from the virtuous cycle of increased scale, network effects and realized investments in its proprietary technologies and accumulated experience.,” the agency said in a news release

“Looking to capitalize upon this, WeWork is growing its footprint in established top tier cities and in developing markets, particularly in Asia, which it is pursuing in conjunction with strategic investors including Softbank.”

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